Cadmium teratogenic effects and metallothionein expression were studied in tissues of lizard embryos at different stages of development. Incubation of eggs in cadmium contaminated soil had no effect on embryo survival, but strongly affected cranial morphogenesis. Cytological analyses demonstrated abnormalities in the development of proencephalic vesicles, mesencephalon and eyes. No defects were observed in somite or limb development. Northern blot analysis demonstrated that MT expression was much stronger in embryos developed in cadmium contaminated soil. In situ hybridization showed an early induction of MT gene expression in developing liver and gut, whereas in brain and eyes the spatial and temporal localization of MT transcripts did not change. A possible correlation between inability to induce MT expression and abnormalities observed in the head region of lizard developing embryos is suggested.